This share jumped more than 100% in a day

Thursday saw numerous mining companies, such as Galaxy Resources Ltd (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE), endure sizable declines.

But one mining hopeful, Diatreme Resources Limited (ASX: DRX), certainly bucked the downward trend exhibited by numerous miners, gaining about 114 per cent on Thursday.

Diatreme Resources, a Brisbane-based mineral explorations company, holds a portfolio of properties across Australia that the company believes are rich in mineral sands, gold and copper.

The company has stated that it’s focussed on the “highly prospective” Cyclone Zircon Project in the Eucla Basin, near the border of Western Australia and South Australia, where it has detected heavy mineral sands including zircon, rutile, leucoxene and ilmenite.

The Diatreme Resources share price surged on Thursday as the prospective miner announced it had struck a deal with a Chinese company which it claims brings Diatreme a “major step closer” to mining mineral sands at the site.

As part of the agreement mining services company China ENFI Engineering Limited is to complete a feasibility study for Diatreme’s Cyclone Zircon Project.

Diatreme Resources directors William Wang and Yufeng Zhuang appear to have faith in the company’s prospects and have together purchased millions of Diatreme shares over the last couple of years.

William Wang has been increasing his stake in Diatreme more recently, purchasing 300,000 in three separate transactions in December.

While Diatreme shareholders enjoyed hefty gains on Thursday, the company’s share price, currently trading at around 3 cents, is still a long way off the 20 cents it was going for back in 2008.

And, although it is clear Diatreme has the potential to reward shareholders with spectacular gains in short periods, it remains a highly speculative share.

Diatreme Resources reported losses of $376,000 for the quarter ended 30 September 2017.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.